Find out the equilibrium level of gdp

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Reference no: EM1358731

Consider an economy described by the following sets of equations:
C = 120 + 0.80DI
I = 320
G = 480
(X-IM) = -80
T = 200 + 0.25y

Find the equilibrium level of GDP. Next find the multiplier for government purchases and fixed taxes. If full employment comes at y+1800, what are some policies that would move GDP to that level?

Reference no: EM1358731

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